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  H.B. No. 1476
 
 
 
 
AN ACT
  relating to capital stock and surplus requirements for certain
  insurance companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 822.054(a), Insurance Code, is amended
  to read as follows:
         (a)  An insurance company must have capital stock in an
  amount of at least $2.5 [$1] million and surplus in an amount of at
  least $2.5 [$1] million.
         SECTION 2.  Sections 822.212(a) and (b), Insurance Code, are
  amended to read as follows:
         (a)  Notwithstanding Section 822.203, to engage in the kinds
  of insurance business for which an insurance company organized
  under this chapter holds a certificate of authority in this state,
  an insurance company organized under this chapter that on September
  1, 2009 [1991], had less than the minimum amount of capital and
  surplus required for a newly incorporated company under Section
  822.054 must:
               (1)  not later than December 31, 2010 [2000], have
  increased the amount of its capital by at least 10 [90] percent of
  the difference between the amount of minimum capital required for a
  newly incorporated company under Section 822.054 and the amount of
  the company's capital on December 31, 2009 [1991]; [and]
               (2)  not later than December 31, 2011, have increased
  the amount of its capital by at least 20 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (3)  not later than December 31, 2012, have increased
  the amount of its capital by at least 30 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (4)  not later than December 31, 2013, have increased
  the amount of its capital by at least 40 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (5)  not later than December 31, 2014, have increased
  the amount of its capital by at least 50 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (6)  not later than December 31, 2015, have increased
  the amount of its capital by at least 60 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (7)  not later than December 31, 2016, have increased
  the amount of its capital by at least 70 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (8)  not later than December 31, 2017, have increased
  the amount of its capital by at least 80 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009;
               (9)  not later than December 31, 2018, have increased
  the amount of its capital by at least 90 percent of the difference
  between the amount of minimum capital required for a newly
  incorporated company under Section 822.054 and the amount of the
  company's capital on December 31, 2009; and
               (10)  not later than December 31, 2019 [2001], have at
  least the minimum amount of capital required under Section 822.054
  for a newly incorporated company.
         (b)  An insurance company that on September 1, 2009 [1991],
  had less than the minimum amount of capital and surplus required for
  a newly incorporated company under Section 822.054 shall
  immediately increase the amount of its capital and surplus to an
  amount equal to the required amount of capital and surplus under
  Section 822.054 if there is:
               (1)  a change in the control of at least 50 percent of
  the voting securities of the insurance company;
               (2)  a change in the control of at least 50 percent of
  the voting securities of a holding company controlling the
  insurance company; or
               (3)  a change in control of at least 50 percent by any
  other method of control if the insurance company or holding company
  is not controlled by voting securities.
         SECTION 3.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1476 was passed by the House on April
  15, 2009, by the following vote:  Yeas 147, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1476 was passed by the Senate on May
  21, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor